Boyin Hearing Completes Nearly RMB 100 Million Series A Financing Led by Legend Capital and Mingxi Capital

VCBeat has learned that on August 18, 2023, BOIN Hearing Technology(SH) Co.,LTD., a domestic developer of medical-grade hearing aids, announced the completion of its Series A financing round, raising nearly RMB 100 million.This round of financing was led by Legend Capital, with Mingxi Capital participating as a co-investor. RCCAPITAL served as the exclusive financial advisor for BOIN Hearing’s current round of financing.

This round of financing demonstrates the high level of attention paid by professional investment institutions to the opportunities for domestic substitution in the medical-grade hearing aid market, as well as their strong recognition of BOIN Hearing’s management team. The successful completion of this financing round has laid a solid foundation for BOIN Hearing’s next phase of rapid growth and ushered in a new chapter!

BOIN Hearing, established in Shanghai in 2019, has grown over the past four years into a robust integrated enterprise in China specializing in the R&D, manufacturing, and sales of medical-grade hearing aids. It is widely acclaimed by end users, clinicians, distributors, and other stakeholders. In 2019, BOIN Hearing’s Shanghai Operations Center was established to oversee national business operations and management, housing a hearing aid R&D center focused on hardware development. In the same year, its Chengdu branch was founded, dedicated to the software-side R&D, including audiology algorithms, digital signal processing (DSP) firmware, and hearing assessment equipment. In 2022, the Changsha branch was established, featuring an R&D center and a large-scale hearing aid production base. In 2023, the Suzhou branch was launched to further expand hearing aid R&D (design output and transfer) and mass production.

In terms of technology, BOIN Hearing has established core competencies in professional hearing aid chips, speech processing algorithms, fitting algorithms, programmers, and software development, while further improving its products to benchmark against mid-to-high-end imported hearing aids. With the completion and commissioning of its production bases in Changsha, Suzhou, and other locations, BOIN Hearing will complete the registration and mass production of more than ten hearing aid models from 2023 to 2025, fully meeting the usage needs of users across various types and price ranges.

Mr. Jiang Xianquan, founder of BOIN Hearing Technology(SH) Co.,LTD., and his sales team have over a decade of experience in sales at leading international hearing aid companies, possessing extensive expertise in sales and market management. The technical team also brings more than ten years of professional experience in hearing aid development. This round of financing will help BOIN Hearing reach new heights and accelerate the process of domestic substitution for Chinese-made hearing aids.

Regarding this financing round, Mr. Jiang Xianquan, Chairman of BOIN Hearing, stated:We extend our gratitude to Legend Capital and Mingxi Capital for their investment and support. We share a strong confidence in the development of domestically produced medical-grade hearing aids. These devices will continuously enhance their comprehensive capabilities, establish an integrated production and sales framework, gradually achieve import substitution, and ultimately become the primary end-user products in China’s hearing aid market. On a global scale, four of the top 50 leading international medical device companies are hearing aid manufacturers, with five major hearing aid groups—represented by Sonova—long accounting for 90% of the global market share. As the world’s second-largest economy with a population of 1.4 billion and a prominently aging demographic, China possesses fertile ground for nurturing giants in the hearing aid industry. After years of accumulation, BOIN Hearing Technology has achieved breakthroughs in core areas previously constrained by reliance on imported products, such as chips, algorithms, and programmers, thereby establishing technical capabilities comparable to those of international leaders. Leveraging professional capital support, BOIN Hearing Technology will further accelerate its efforts in product R&D, capacity layout, and market expansion, solidifying its position as a leading enterprise in the domestic medical-grade hearing aid sector and advancing toward its goal of becoming an international industry giant.

As the lead investor in this round of financing, Legend Capital stated:The domestic medical-grade hearing aid industry in China continues to grow, with Chinese-made medical hearing aids achieving certain breakthroughs in R&D. Domestic brands that focus on product innovation, high cost-performance ratio, and quality service are ushering in new development opportunities. BOIN Hearing integrates multiple technological advantages, featuring proprietary algorithms, self-developed fitting software, and programmers, which facilitate store-based fittings and enhance user experience, thus presenting strong market prospects. The founder of BOIN possesses extensive industry experience and broad resources, along with comprehensive expertise in the commercialization of hearing aid products. Core team members each have over ten years of accumulation in the hearing aid industry. We believe that BOIN Hearing will accelerate its development and strive for excellence with capital support, while Legend Capital will provide assistance in optimizing corporate development strategies, supporting management and operations, and fostering industrial connectivity and cooperation.

As a co-investor, Mingxi Capital stated:Hearing loss is a significant factor affecting people's quality of life, and the influence of modern lifestyles has further led to a trend of hearing loss occurring at younger ages. Improving hearing quality through hearing aids is gaining acceptance among a growing number of people, with willingness to pay rising rapidly. Mr. Jiang, the founder, is a veteran in the industry. The BOIN team possesses extensive experience in R&D, production, sales, and operations, and holds substantial potential for international market expansion. The Mingxi team is honored to have the opportunity to collaborate with Mr. Jiang to jointly build BOIN into a great company with significant industrial influence.

Ms. Yan Guopei, Senior Vice President of RCCAPITAL, stated as the exclusive financial advisor for this round of financing:As a consumer-facing product with a vast customer base, hearing aids represent a medical device category with an exceptionally high growth ceiling, further elevated by the long-established premium pricing structure of imported products, often reaching tens of thousands of yuan. Meanwhile, positioned at the intersection of healthcare and consumer goods, hearing aids offer flexible sales models and significant potential for leveraging channel resources. This environment allows superior management teams to gain a competitive edge and achieve scale more rapidly. We are honored to have assisted BOIN Hearing in completing this round of financing. We believe that, backed by professional capital, BOIN Hearing’s products will be able to expand rapidly across end-user markets, break the market dominance held by the five major foreign competitors, and accelerate the localization of medical-grade hearing aids. We remain firmly committed to providing long-term support for BOIN Hearing’s development.

BOIN Hearing is a leading integrated enterprise in China specializing in the research and development, manufacturing, and sales of medical-grade hearing aids. In 2020, it was awarded the Annual Most Influential Product Innovation Award by Caijing Magazine’s New Consumption “New Awards.” In December 2021, BOIN Hearing was recognized as a National High-Tech Enterprise. That same year, it established a strategic partnership with “China Assistive Devices” and jointly founded the “Demonstration Base for R&D and Adaptation Services of Intelligent Hearing Assistive Technologies under the China Institute of Assistive Technology.” Additionally, it undertook the national research project titled “Intelligent Locatable Remote-Fitting High-Power Hearing Aids.” In 2022, BOIN Hearing’s products were included in the “2022 Catalogue of Promoted Products for the Elderly” issued by the Ministry of Industry and Information Technology of China. In 2023, the company assumed responsibility for the formulation, technical research, promotion, submission for review, and approval of the national standard “Electroacoustics – Hearing Aids – Part 16: Definition and Verification of Hearing Aid Functions.” It led feasibility analyses of the standard’s content, conducted experimental validations, and organized seminars on the standard. As of July 2023, BOIN Hearing had established branches in Shanghai, Chengdu, Changsha, and Suzhou, with medical-grade hearing aid production lines located in Shanghai, Changsha, and Suzhou. Its cumulative R&D investment has reached tens of millions of yuan. The company currently holds 25 patents, 56 trademarks, and 24 software copyrights. Its Shanghai subsidiary has obtained the Medical Device Registration Certificate for “In-the-Ear Hearing Aids,” among other certifications.

Legend Capital, established in 2001, is a professional investment firm specializing in early-stage venture capital and growth-stage investments. Over the past two decades, Legend Capital has accumulated comprehensive and mature fund management expertise along with extensive industry resources. The firm’s mission is to foster corporate innovation and growth, thereby driving industrial progress and social development, through capital support and managerial assistance. For many years, Legend Capital has adhered to a proactive approach to value-added services, contributing to the rise of multiple world-class leading enterprises and supporting the development of numerous national-level “Specialized, Refined, Differential, and Innovative” (SRDI) Little Giant companies. Meanwhile, Legend Capital actively fulfills its social responsibilities by establishing an ESG framework and pursuing sustainable development.

Mingxi Capital is a specialized healthcare investment firm jointly established by Mingde Biotech and Legend Capital, focusing on early-stage investments in the healthcare sector. It prioritizes niche segments such as innovative medical devices, diagnostic technologies, life science tools, and home-based diagnosis and treatment. Mingxi Capital believes that the future of China’s healthcare industry belongs to those who integrate medicine with engineering. By actively incubating ventures and empowering them with industrial resources, Mingxi Capital supports these pioneers in co-creating great companies that bring benefits to patients, rewards to practitioners, and significant impact to the industry.

RCCAPITAL is a boutique investment bank specializing in the healthcare and medical sectors, with offices in Beijing, Shanghai, and Hangzhou. It is renowned in the industry for its high efficiency, high success rate, and comprehensive services. The RCCAPITAL team comprises professionals from boutique investment banks, accounting firms, biotechnology companies, and other related fields. Since its establishment, the firm has facilitated hundreds of millions of RMB in financing for its clients, covering areas such as diagnostics, medical devices, digital health, biotechnology, new drug R&D, healthcare services, innovative payment solutions, and CXO.